On October 1 of the current year, an unmarried taxpayer retires and begins receiving monthly pension checks in the amount of $2,400. During her working years, the taxpayer contributed $6,300 to her employer's pension plan with after-tax dollars. Using the taxpayer's age at retirement, the expected number of monthly payments is 210. Of the $7,200 in pension benefits received during the current year, what amount must she include in gross income?
On October 1 of the current year, an unmarried taxpayer retires and begins receiving monthly pension checks in the amount of $2,400. During her working years, the taxpayer contributed $6,300 to her employer's pension plan with after-tax dollars. Using the taxpayer's age at retirement, the expected number of monthly payments is 210. Of the $7,200 in pension benefits received during the current year, what amount must she include in gross income?
Chapter4: Income Tax Withholding
Section: Chapter Questions
Problem 11QR
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What amount must she include in gross income?
Transcribed Image Text:On October 1 of the current year, an unmarried taxpayer retires
and begins receiving monthly pension checks in the amount of
$2,400. During her working years, the taxpayer contributed
$6,300 to her employer's pension plan with after-tax dollars.
Using the taxpayer's age at retirement, the expected number of
monthly payments is 210.
Of the $7,200 in pension benefits received during the current
year, what amount must she include in gross income?
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